We are living in a world where online shopping matters a lot. Many people prefer it over going to supermarkets as it saves time. This growing significance of online shopping makes last mile delivery an important factor.
If you own a business, you must be aware of last mile logistics and delivery, right? Well, once a customer places an order, the last mile journey begins. However, do you spend a lot of money on that process? If yes, you need to know a few ways to reduce last mile delivery costs .
So, why incur a huge last mile delivery cost , if you can do it while saving money? In this article, we'll make you familiar with 9 strategies to cut and control last mile delivery costs . It'll save you money without compromising the efficiency of your last mile delivery .
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9 Ways To Reduce Last Mile Delivery Costs
You must have understood why it's almost impossible to leave the last mile process out. Now, let us come to the main part: reducing last mile costs . Here are some of the best ways to reduce last mile delivery costs :
- Use A Good Last Mile Delivery Software
If you want to have a well-organized last mile delivery process, consider using good software for it. It’ll help you manage all the steps in last mile delivery efficiently. Software like TrackoMile streamlines the process, optimizes the delivery routes, and helps in real-time tracking of the entire journey. This means less hassles and on-time delivery, leading to lower costs.
- Route Optimization
As a business, you need to deliver to several customers. However, can you do it properly without a well-mapped plan? Well, of course not! When you optimize the routes and assign the right paths, it means less fuel consumption and timely delivery.
- Incorporate Crowdshipping
Have you ever considered incorporating crowd shipping in last mile delivery? It is all about making good use of local people or businesses for delivery. When you do this, it cuts the cost of last mile delivery for you as you use the local community for delivery.
- Making Strategies For Warehouse Placement
Location matters a lot when it comes to last mile delivery. When you have warehouses at the right location, it cuts the last mile costs. So, you can consider placing the warehouses strategically near the customer hubs. This will lower the delivery time and cut the transportation costs.
- Implement Delivery Lockers
Do you face problems due to missed deliveries? If yes, you can solve it by implementing delivery lockers. When you have safe drop-off points or lockers, you can save the cost incurred due to repeated delivery attempts. Not just this, it’ll save you time and resources as well.
- Invest in Electric Vehicles
Everyone nowadays prefers electric vehicles over normal ones. When you switch to electric vehicles for the last mile delivery process, it helps you meet your sustainability goals. Along with this, it’ll cut the maintenance and fuel costs.
- Use Drones and Autonomous Vehicles
Drones are so much in trend nowadays, aren’t they? Of course, yes! If you use those drones and autonomous vehicles, it might improve last mile delivery costs for you. It’s true that these technologies are still in their early phases, but they have the potential to lower costs.
- Collaborate With Third-Party Logistics Providers
Collaboration is yet another effective way to cut the last mile delivery costs for your business. When you partner with reliable third-party logistics providers, it can make your last mile process more efficient. If you outsource a few aspects of your logistics, it can help in cutting overall costs.
- Continuous Monitoring and Analysis
Lastly, you should not forget to make good use of data in your last mile delivery services . When you do constant monitoring and analysis, it helps you understand the problems in the delivery process. Once you know the obstacles, you can make decisions and changes to make the process better.
Read Blog : Hyperlocal Delivery Vs Last-Mile Delivery- Key Differences
Why is Last Mile Delivery Important?
First of all, you need to understand that you can't ignore last mile delivery services nowadays. It's that process that regulates the entire delivery journey after you receive an order. Here are a few reasons why this process becomes important:
- Customer satisfaction
When you pay attention to last mile delivery , it leads to timely deliveries. This further means that you'll have happy and satisfied customers. It's quite obvious as they'll be receiving the parcel when they expected.
- Brand loyalty
Having happy and satisfied customers simply means that they'll trust your brand and business. This trust will make them your loyal customers and they'll keep coming back to you. However, for this, you need to make sure that your last mile delivery software are on point constantly.
- Competitive Edge
This is a world of cut-throat competition in the market. When you offer on-time and accurate deliveries, it'll surely give you an upper hand over your rivals. Studies suggest that 57% of customers buy more from brands they are loyal to.
- Word of Mouth
When customers are loyal, they talk about you to others. This means that there will be a positive word of mouth about your company. Imagine how great it'd feel to get more customers because of that positive word of mouth.
- Reduced Returns
If you manage the last mile delivery process well, there will be fewer chances of customers returning the parcels. When the entire process is hassle-free and accurate with timely delivery, customers will just love it.
Final Thoughts
It's quite obvious that last mile delivery is an opportunity to make a strong impact on the market. If you use the right software like TrackoMile and implement other strategies well, you can save money during the process .
These ways will affect all the major cost components in last mile delivery including riders and vehicles. So, why worry when you can cut the cost without compromising your last mile process? Just keep the above-mentioned ways in mind and you are good to go.
